Capital One Costco Platinum MasterCard Review

Capital One® Costco Platinum is a credit card available to Costco members which offers money back and plenty of added incentives. Rewards credit cards that feature cash back save money and also offer travel and other rewards.

Quick Overview of the Card

Capital One® Costco allows holders to earn generous cash back on regular, restaurant, and gas purchases but the percentages vary. You will earn 1 percent on daily purchases, 2 percent on gas, and 3 percent on your restaurant purchases.

Interest rate (cash advances, transfers, purchases): 19.75 percent

Annual fee: none

Note that transferring balances is currently not an option. On the good side, the card comes with added perks such as platinum benefits, including extended warranty and price protection, as well as insurance and travel benefits such as travel assistance, baggage delay, and travel accident insurance.

It is a good idea to check for fees and rates that apply, including default rates, foreign currency conversion, minimum payment, etc. The current default rate is 25.9 percent if you miss your due date and are late on your payments. It also pays to check the foreign currency conversion rate if you frequently travel or shop in a foreign currency. With Costco MasterCard® Canada, the current foreign currency conversion rate on this card is 2.5 percent of the converted amount. There are other fees to watch for, including dishonored payment, balance transfer, over the limit, etc.

Who Is This Card for: Target Demographics

This Costco MasterCard® is an excellent choice for customers who make frequent purchases and want to earn cash back. The more purchases you charge on the card, the more you earn based on the percentages above. Keep in mind that this card is the perfect choice only if you are a Costco member, allowing you to take full advantage of all benefits. And if you are not, you are free to apply for membership and then apply for the card. To do this, you will be asked to select a region to join Costco. You are also free to choose from gold star, business, and executive membership. Business membership, for example, is offered to ranchers, farmers, government agencies, non-for-profits, managers, and business owners.

How/Where to Apply?

There are different ways to apply with Capital One® Costco, and one is to verify that you are a Costco member and fill out an online application. All you need is to fill your names and membership number. If you need help, you can call Costco Card Capital One®, and they will be happy to assist you. The Costco MasterCard application is easy to fill, whether online or in-store, you are asked to provide your financial and personal information.

Pros of the Card

There are plenty of benefits for members, one being that cashback credit cards save money, and there is no threshold or limit on the amount you can earn. The Capital One® Costco Platinum MasterCard® offers money back in the form of rebate coupons that can be used in-store. Purchase assurance is an added benefit and so is car rental collision in case a rental vehicle is stolen or damaged. Zero liability is also an added benefit to protect members in case of unauthorized use. You can rest assured that your account will be monitored on a regular basis for fraudulent activity.

Cons of the Card

On the downside, customers only get 0.5 percent cash back on the first $3,000 spent on purchases. This is an incentive to spend more but it is a bad idea to go over the limit in an attempt to earn more. On the good side, members earn money back everywhere (at the pump, while dining, etc.) and not just at Costco locations.

How Does the Card Compare to Other Issuers and Major Canadian Competitors?

The Costco Canada credit card offers a good alternative to other cashback options but it pays to shop around and compare different rewards credit cards. Cashback cards are offered by major issuers such as the Scotiabank, MBNA, and other banks, unions, credit card companies, etc. Scotia Momentum Visa Infinite, for example, is offered by Scotiabank and features 1 percent cash back on regular purchases. However, in comparison to Capital One® Costco, customers earn 4 percent back on gas purchases. The SimplyCash Card is also a cashback option offered by American Express that features money back in the form of statement credit. Customers earn 2 percent back.

Any Better Alternatives to This Card?

This depends on a number of factors such as whether you use one or multiple cards, whether you pay the minimum only, the annual fee and interest rate, etc. If cash back is your thing, then there are plenty of options. TD Canada Trust, for example, features a cashback card that allows you to earn 0.75 percent back. This looks like a less generous offer than Costco’s but customers benefit from perks such as free authorized users, automotive features, travel benefits, and a lot more. Optional coverage is also available.

Were There Any Customer Complaints/Scandals after the Launch?

While the launch was quite successful, the number of people who chose to become Costco members was larger than expected. Customers complain about problems such as confusing statements, slow resolution, frequent fraudulent activity, and relatively low credit limits. Other major issues are no automatic monthly payments, slow payment processing, and long hold times. Costco representatives announced that they were working hard to resolve these by allocating more resources.

How Does This Card Compare to the Old Costco Partner AMEX?

The major reason to choose an AMEX card was their long-time partnership with Costco. Costco assured existing and new customers that they would have the opportunity to earn generous rewards despite the split-up with AMEX.

In the end, how does the former AMEX card compare to the new Platinum MasterCard? It seems that the launch is a win for cardholders in that the old card has an annual $4,000 limit in purchases. The best part, of course, is that the transition has no effect on your credit score.

Comments

DO NOT USE CAPITAL ONE, customer service is non existent, I am a very loyal to whatever card or organization I deal with, Visa 38 years, former Master card 35 years. When Costco went to Master card from Amex I thought I would switch so my executive membership and credit card would be together, biggest mistake of my credit card life, 18 months in the first time my balance on the card (which was always kept current) was over 10,000 they mysteriously could not find my cheque for the payment (due date 13th). I call on 17th 6:30 pm as cheque had not cleared my account, lady said no cheque yet somehow mysteriously it cleared my account that night. Long story short version recommend this company to your worst enemy, they will screw them over more than you ever could, for your friends recommend any other company. $225 interest later and back to the MasterCard that I originally had. Capital one rating -10, Costco I am disappointed with your choice of credit card company but still a loyal customer of yours.

Spoke to Costco MasterCard agent Tunisia who allegedly told me she was transferring me to a supervisor and am holding for 45 minutes and waiting. Ridiculous!! Worst customer service and inefficient problem resolution.

Does Costco Mastercard use the Bank of Canada conversion rate plus 2.5 % on purchases by Canadians in the US? If they don’t use the Bank of Canada conversion rate what rate do they use? I called customer service they didn’t know . They just told me to google it!!!